IRPC includes climate-related risks into its corporate risk portfolio and prioritizes risk portfolio by using risk matrix based on composite exposure of each corporate risks. The composite exposure is measured in 2-dimensions, Risk Likelihood and Risk Impact to an organization in 3 aspects (Economic, Social and Environment). This is for ensuring that we have well-balanced ESG risk portfolio.<
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Four groups are classified for our climate-related risks and opportunities:

Regulatory Risks: the projected impacts to IRPC are moderate by 2020 assuming a relatively soft carbon price introduction to carbon markets in Thailand, such as Cap-and-Trade and Carbon Tax.

Reputational Risk: Industry and other stakeholder reputational risks/opportunities are emerging but the certainty and impact are more challenging to gauge. Our reputational risks include perception within industry and climate change mitigation activities.

Customer Risks: given the integration and ownership structure of IRPC, we do not project significant customer risk, but see overall market risk beginning to be a factor. For customer risk we focus on labelling regulations and standards and changing customer behavior

IRPC has assessed climate change risks annually and determined sensitivity analysis of climate change risk in order to assess carbon dioxide reduction projects in order to consider cost and GHG reduction.
Climate Change Strategies
As IRPC recognize how importance of climate change impact on core businesses of oil and gas and petrochemical now facing, IRPC developed the climate change strategy and positioning the organization (as leader/ fast follower) to move forward. Process of strategy setting has been done through identifying risks & opportunities, evaluating peer pratices & stakeholder expectations, and executive workshop. Our strategy aims to ensure that roadmap of initiatives should be undertaken to achieve its strategic ambition.
Climate Change Products
IRPC is committed to the research and development of new products to meet the different requirements from customers and development of environmental-friendly products which creates more business opportunity and helps IRPC to be able to adapt to the change in economy, society and environment, which leads to sustainable growth.
IRPC offers alternative solutions for users who are concerned about environmental impacts by developing the products as follows:

POLIMAXX Green ABS, in which synthetic rubber is replaced by a natural rubber. The uses of product can reduce GHG emission.

POLIMAXX Green PS, an innovative product made from 20-50% of styrenic mixed with natural rubber. The development of this product is a co-project between IRPC and a customer with the aim to develop a traffic cone made from plastic rubber composite which can reduce the use of synthesis rubber by 30%. The new traffic cone is strong, durable, flexible and impact-resistant.

POLIMAXX Wood Plastic Composite is a plastic product with a mixture of wood powder, blending together outstanding properties of plastic and wood perfectly. IRPC focuses on developing products that can be used in consumer packaging and furniture. In case of consumer packaging, all requirements from Food Contact EU Regulation (FDA) had already been passed.

POLIMAXX Natural Pigment Color Compound is categorized as an environmentally friendly plastic. It is developed by mixing plastic with natural color extracts instead of synthetic colors. The method does not compromise physical property of the plastic and is under international quality control. There are three colors, which are green from spinach, red from shellac, tomatoes, or strawberries, and yellow from turmeric, bell peppers, or carrots. This product is an alternative to the growing number of health and safety conscious consumers in Thailand and abroad.

Products that have Carbon reduction label (HDPE, PP, PS and EPS) which applicable for various products, for instance, plastic bag, electrical appliance, heat insulation, etc. IRPC developed these products in term of energy saving and chemical usage reduction in the production process and registered Carbon Reduction Label.

Gasohol

Bio Diesel

In addition, IRPC also addresses the transition of a low carbon economy operating in their own operation through several projects. For example;

Expandable Polystyrene (EPS) for Construction is the energy saving product for construction. It is a special heat insulation used in the construction of buildings that need temperature control.

CHPI (Combine Heat and Power Project), which uses natural gas as a fuel and totally cancelled out the use of fuel oil boiler resulting in a reduction of carbon dioxide emission of more than 260,000 tons of carbon dioxide equivalent per year.

Emissions Reduction
To contribute to the management of climate change, IRPC has improved the efficiency of production process, develop low-carbon products and energy saving products. IRPC enhanced the energy efficiency in production process continuously in order to utilize the natural resources to its maximum efficiency and bring about minimal impact to environment. As a result of several production process improvements include efficiency improvement in heat and steam management, Electricity Reduction and Logistic Management, as well as collaborative initiatives with PTT Group, etc

There are two types of energy saving and CO2 reduction program, which are operational control projects, and process improvement (includes additional equipment installation projects).

- Operational Control Projects, such as reduction of electricity consumption, reduction of internal heat loss and steam consumption in the operation process.

Internal Carbon Pricing
In response to the constantly changing global situation with regard to climate change, IRPC is currently studying on Internal Cost of Carbon Applications. IRPC is considering implementation of internal carbon pricing to create organizational understanding of GHG issues and potential exposure. IRPC is now discussing the implementation of shadow carbon price. IRPC will use shadow carbon pricing as a factor to evaluate new investments and infrastructure projects. The internal price will contribute to the design of a processing facility that incorporates greenhouse gas emissions reduction, and therefore lower our carbon tax burden.

Water Management
IRPC establishes Sustainable Water Management Framework in order to ensure proper water management in IRPC supply chain, water risk assessment, and analyzing and developing risk mitigation plan.
IRPC initiates water consumption strategy 321RPSD which are

- 3R – Recycle, Reuse, and Reduce water consumption

- 2R – Reserve and Responsibility of water resource

- 1P – Public Participation for improving and managing water resource

- SD – Supply and Demand management for business continuity and ensuring no community conflict.